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European Commission Presses for Free Trade Agreement with US

EU Trade Commissioner Karel de Gucht says the transatlantic relationship is the "most important relationship in the world."
An EU-U.S.free trade agreement working group was established last year, but neither side has pressed forward.
United States and EU account for about half of the global economy.

The European Commission called on Friday for a free trade deal with the United States that would help the struggling European economy and also ensure the continent remained an important U.S. partner.

Noting how Europe had hardly figured in the U.S. presidential elections, EU Trade Commissioner Karel de Gucht said the "transatlantic relationship is still by far the most important relationship in the world."

And "businesses, consumers and at least some of the politicians on both sides of the Atlantic know it is," de Gucht said, according to the text of a speech given in Dublin.

"Now it is time to act," he said, noting there was serious interest in an EU-U.S. free trade agreement.

An EU-U.S. FTA has been talked about for years and a working group was set up a year ago, but neither side has pressed actually to begin talks while they have pressed ahead with other countries to conclude deals.

Diplomats admit in private that it will take a lot of work to overcome decades of tariff and market access problems between the two.

Between them the EU and the United States account for about half of the global economy and a third of global trade flows, but "we cannot take this partnership for granted," de Gucht said.

Deal Would Assist Economic Recovery

Both parties face considerable uncertainty that undercuts investment, growth and jobs, and in this context a comprehensive trade deal "would help us put our recovery on an even sounder footing."

Although tariffs across the Atlantic are low, they could be lower still, he said, calling for liberalization across the board.

Sends Important Political Message

An FTA would also send an important political message, showing that the EU and United States could still act decisively in the face of new challenges, especially from emerging economic giants such as China.

"A new transatlantic trade initiative would be a bold move that would show that politics works in Europe and the United States. That both sides are willing to take the action necessary to deliver recovery."

EU figures show the EU exported 260 billion euros worth of goods to the United States in 2011 and bought U.S. imports worth 184 billion euros.